The AUD/NZD pair hovered near the 1.0900 level on Wednesday, maintaining a firm bullish stance as markets transitioned into the Asian session. Price action remained close to the daily highs, reflecting underlying buyer momentum, though some technical indicators suggested a possible near-term pause.
Technical Overview: Cautious Optimism Prevails
The pair’s overall tone remains constructively bullish, supported by short-term moving averages that continue to offer a favorable backdrop for further gains. The 10-day Exponential Moving Average (EMA) and Simple Moving Average (SMA) are aligned with current price levels, reinforcing buying interest. The 20-day SMA also supports the broader upward bias.
However, the rally faces headwinds from longer-term resistance, with both the 100-day and 200-day SMAs still positioned above the current market range. These overhead levels could act as barriers to further upside in the medium term.
Momentum indicators paint a mixed picture. The Relative Strength Index (RSI) sits comfortably in the 60s, indicating neutral-to-bullish momentum without signaling overbought extremes. The Moving Average Convergence Divergence (MACD) line continues to show a bullish crossover, lending weight to the prevailing upward trend.
In contrast, short-term oscillators such as the Williams %R and the Stochastic RSI (Fast) have entered overbought territory, hinting at potential exhaustion and raising the risk of a near-term pullback if bullish momentum stalls.
Key Levels to Watch
Support: 1.0870, 1.0865, 1.0860
Resistance: 1.0910, 1.0920, 1.0950
A decisive break above 1.0910 would likely confirm continued bullish extension, opening the door to a broader breakout toward 1.0950. Conversely, a retreat below support at 1.0870 could trigger a short-term correction, potentially dragging the pair back toward the lower end of its recent range.
As it stands, buyers appear to hold the upper hand, but caution is warranted amid mixed momentum cues and looming resistance caps.
Related Topics:
